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Everything you've always wanted to know about merchant accounts, but didn't know where to ask! Exactly what is it? Exactly what is it? Merchant account refers to an account set up to enable a merchant to accept credit cards for purchases. If it will be used on the Internet, it is a special type of account. The account must be used in conjunction with a special gateway that insures secure transactions through an Internet connection.
Is it easy to get one? It can be easy, it can be very difficult. A bank will have strict set of prerequisites. For example a bank may require you have been in business for a minimum of 3 years, have a commercial storefront, good commercial credit and of course have all the necessary licenses and paperwork. The approval rate of a bank is very low. On the other hand a company that is a specialist in providing complete merchant account and gateway solutions has a very high approval (about 98%) because of their ability to monitor the complete process. Their requirements are generally that you have a legitimate business with licenses and paperwork. Even a prior bankruptcy is not necessarily a reason for rejection. It is even possible to get an instant approval online and begin processing transcations immediately! What does it cost? To keep it simple the fees can be classified as discount rate, setup fee, monthly charges and other charges. The discount rate is a percentage of the amount of sale that you pay to the company issuing your merchant account. In other words, the amount of money you receive from the sale is "discounted" by a certain amount. This varies by the type of transactions you will be conducting and the risk involved. It is usually 2.29% or higher for online sales, in person sales with a signature is less and some where in between comes mail order and phone sales. The setup fee, monthly charges and other charges vary. One company may have a low or no setup fee but may have higher monthly and other fees, another may have moderate setup fees and monthly charges but have many hidden other charges, another may seem less expensive but offer no support and fewer important features. Sound confusing, maybe like trying to understand long distance charges? I feel that quite often, if not always, the saying .. "You get what you pay for" .. is very true! The best advice I can give you is, deal with a reputable company that can service your requirements and you will end up paying a competitive, fair price with good support and excellent overall value. After all, this is really what you need and have a right to expect! What should I look for in terms of service and features? The company you choose should provide:
How do I get one? To find out specifically what is involved for your business and to obtain a complete solution you must first determine what type of shopping cart you are using to make sure you choose a compatible gateway. We offer several solutions that we support with our shopping carts. At least one of these same services will work with any cart you choose, even if it's not one of ours. We can tell you which one to use, how much it will cost and how to get it. If you need help integrating a cart other than ours we can provide help with that at a reasonable rate. In most case we can have you set up the same day we hear from you. Check our merchant account provider recommendation |
